While the AI can and will now upgrade Outposts (Yay!), it still won't upgrade other Resource/Shard Improvements unless they are within City Walls.
(1) Altar - (2) Shrine - (3) Temple
(1) Quarry - (2) Mine - (3) Trove
(1) Mine - (2) Smelter - (3) Foundry - (4) IronWorks
AI will only build the bolded ones (1) unless the Resource/Shard is within City Walls. Since it's actually uncommon for Resources to be within City Walls (Especially since the AI doesn't use "Manual Improvement Placement" to snake toward resources), it means the AI doesn't upgrade them very often.
First reported here.
LH Mods by Primal